Legrand SA

ENXTPA:LR Stock Report

Market Cap: €25.6b

Legrand Valuation

Is LR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LR (€97.5) is trading below our estimate of fair value (€136.19)

Significantly Below Fair Value: LR is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LR?

Key metric: As LR is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for LR. This is calculated by dividing LR's market cap by their current earnings.
What is LR's PE Ratio?
PE Ratio24.5x
Earnings€1.05b
Market Cap€25.56b

Price to Earnings Ratio vs Peers

How does LR's PE Ratio compare to its peers?

The above table shows the PE ratio for LR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.3x
NEX Nexans
18.7x13.1%€4.9b
SU Schneider Electric
34.8x14.1%€134.4b
MRN Mersen
6.7x15.1%€516.4m
PERR Gérard Perrier Industrie
17x5.0%€334.1m
LR Legrand
24.5x8.6%€25.6b

Price-To-Earnings vs Peers: LR is expensive based on its Price-To-Earnings Ratio (24.5x) compared to the peer average (19.3x).

Price to Earnings Ratio vs Industry

How does LR's PE Ratio compare vs other companies in the European Electrical Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
LR 24.5xIndustry Avg. 17.0xNo. of Companies9PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LR is expensive based on its Price-To-Earnings Ratio (24.5x) compared to the European Electrical industry average (17x).

Price to Earnings Ratio vs Fair Ratio

What is LR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.5x
Fair PE Ratio18.6x

Price-To-Earnings vs Fair Ratio: LR is expensive based on its Price-To-Earnings Ratio (24.5x) compared to the estimated Fair Price-To-Earnings Ratio (18.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst LR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€97.50
€105.11
+7.8%
11.3%€125.00€82.00n/a19
Nov ’25€105.30
€105.95
+0.6%
11.6%€125.00€82.00n/a19
Oct ’25€102.35
€105.37
+2.9%
12.0%€125.00€82.00n/a19
Sep ’25€101.20
€101.29
+0.09%
12.3%€125.00€82.00n/a17
Aug ’25€97.14
€101.00
+4.0%
12.1%€125.00€82.00n/a17
Jul ’25€93.14
€99.24
+6.5%
12.6%€125.00€80.00n/a17
Jun ’25€99.10
€98.29
-0.8%
12.7%€125.00€80.00n/a17
May ’25€96.86
€95.83
-1.1%
12.3%€113.00€75.00n/a18
Apr ’25€98.22
€94.63
-3.7%
12.0%€113.00€75.00n/a19
Mar ’25€92.94
€92.95
+0.01%
10.8%€110.00€75.00n/a20
Feb ’25€91.24
€91.50
+0.3%
11.4%€110.00€75.00n/a20
Jan ’25€94.10
€91.80
-2.4%
15.3%€120.00€60.00n/a20
Dec ’24€89.42
€91.95
+2.8%
14.5%€115.00€60.00n/a19
Nov ’24€81.90
€93.11
+13.7%
14.4%€115.00€60.00€105.3019
Oct ’24€87.30
€93.45
+7.0%
14.2%€115.00€60.00€102.3520
Sep ’24€90.84
€92.76
+2.1%
13.5%€115.00€60.00€101.2021
Aug ’24€92.24
€92.76
+0.6%
13.5%€115.00€60.00€97.1421
Jul ’24€90.80
€89.38
-1.6%
11.4%€103.00€60.00€93.1421
Jun ’24€90.00
€89.14
-1.0%
11.5%€103.00€60.00€99.1021
May ’24€85.70
€88.52
+3.3%
11.5%€100.00€60.00€96.8621
Apr ’24€84.08
€87.29
+3.8%
13.0%€100.00€60.30€98.2222
Mar ’24€87.94
€86.51
-1.6%
14.1%€100.00€60.30€92.9422
Feb ’24€82.46
€83.01
+0.7%
12.6%€96.00€60.30€91.2421
Jan ’24€74.82
€81.63
+9.1%
11.9%€95.00€60.30€94.1021
Dec ’23€79.64
€81.73
+2.6%
12.0%€95.00€60.30€89.4221
Nov ’23€77.72
€83.33
+7.2%
13.2%€100.00€60.30€81.9022

Analyst Forecast: Target price is less than 20% higher than the current share price.

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